Video game giant Electronic Arts (EA) is in advanced talks to take itself private in a massive deal valued at approximately $50 billion. Following this historic announcement, the publisher’s shares surged over 15% today, reaching $197.33.
EA Could Be the Largest Leveraged Buyout in History
According to the Wall Street Journal, if this $50 billion privatization deal goes through, it could break the record for the largest leveraged buyout in history. The previous record was held by the $45 billion TXU Energy deal in 2007.
Based in Redwood City, California, EA is known for its sports games, particularly Madden NFL and the football series FC (formerly FIFA), as well as The Sims and Battlefield series.
Investors interested in the deal include Saudi Arabia’s Public Investment Fund (PIF), known for its significant investments in the gaming sector, and a group including private equity firm Silver Lake. Negotiations are reportedly progressing rapidly, and the agreement is expected to be publicly announced next week.
Following the announcement, EA shares surged by over 15% to $197.33. The stock’s value has increased by 32.2% since the beginning of the year. The company, whose market capitalization has risen to $48.28 billion, is making such a significant move after a challenging financial period.
In its third-quarter 2025 financial results released in February, the company reported a 6.4% year-over-year revenue decline. This decline was attributed to weak sales of FC 25 and the new Dragon Age games, as well as challenging market conditions. This privatization move is seen as a way for the company to overcome these financial challenges and realize its potential more quickly.
EA’s potential privatization continues a trend of record-breaking deals in the global gaming industry. Previously:
- Microsoft acquired Activision Blizzard for a record $68.7 billion.
- Take-Two Interactive acquired Zynga for $12.7 billion.
If EA’s $50 billion privatization deal is completed, it will make history as the largest private sector acquisition in the global gaming industry.
